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Fees for non-profits

**Fees for Non-Profits: Navigating the Complex World of Online Donations**

As a non-profit organization, you’re no stranger to the challenges of finding cost-effective ways to connect with supporters and receive donations. In today’s digital age, online donations have become an essential part of fundraising strategies. However, navigating the fees associated with online payments can be overwhelming. In this article, we’ll shed some light on the topic and provide you with solutions to minimize costs and maximize the impact of each donation.

**The Hidden Costs of Online Donations**

When it comes to online donations, most payment processors like PayPal, Stripe, and platforms like GoFundMe, take a small percentage of each transaction as their fee. This fee can range from 2.9% to 3.5%, depending on the processor used and your location. These fees may seem insignificant, but they can quickly add up, reducing the amount of money that reaches your non-profit.

**Choosing the Right Payment Processor**

Selecting the right payment processor is crucial to minimizing fees. Some processors are specifically designed for non-profits and may offer reduced rates or special services. Here are a few options to consider:

* **Stripe**: Offers an easy-to-use system with a rate of 2.9% + 30 cents per transaction.
* **PayPal**: Similar to Stripe, with a rate of 2.9% + 30 cents. PayPal also offers a “Donate” button with a slightly different fee structure.
* **Donorbox**: Specifically designed for non-profits, Donorbox offers fees starting at 2.2% + 10 cents on donations made by card.
* **Charity Checkout**: PayPal’s specialized donation platform for 501(c)(3) non-profits, which may offer lower fee structures for donations.

**Reducing Costs: Strategies for Success**

While it’s unlikely you’ll find a payment processor that doesn’t take a fee, there are strategies to minimize costs and bring more revenue to your organization.

* **Donor Matching**: Encourage supporters to donate on certain days when their contribution can be matched, increasing the net amount received after fees.
* **Fundraising Campaigns**: Run targeted online fundraising campaigns through platforms like Kickstarter or GoFundMe, which can sometimes result in special fee structures or even reduce fees if the campaign reaches certain milestones or goals.
* **Direct Debit**: Encourage supporters to make donations via direct debit from their bank, reducing transaction fees.

**Conclusion**

Payment fees may be an inevitable part of online donations, but they shouldn’t dampen the spirit or efforts of your non-profit. By carefully selecting the right payment processor and considering cost-effective strategies, your organization can navigate these challenges and maximize the impact of each donation. Remember, the ultimate goal is to ensure that as much of the donors’ generosity as possible finds its way to your non-profit’s mission and those it serves.